Tata Motors
TATA MOTORS GLOBALIZATION STRATEGY
The world is becoming smaller, both metaphorically and literally. The Iron Curtain and the Berlin Wall have been disbanded, changing the fortunes of many economies. India is no exception to this change. The wave of liberalisation has given Indian corporates a new dimension to globalisation. Tata Motors, a trendsetter in the Indian automobile industry, is setting a new direction to the globalisation of the Indian auto industry.
The question that has been in the minds of the senior management at Tata Motors was will we remain exporters of vehicles or do we venture into the international automobile market as a company that can match the best in the business? The answers were obvious. The first step was to align the international business to the two business units the Passenger Car Business Unit (PCBU) and the Commercial Vehicle Business Unit (CVBU), to bring greater focus and increased synergy between the domestic and international operations.
International business needs to be looked at from a perspective that goes beyond volumes and presence in many countries. DrV.Sumantran, executive director, PCBU, says, "The company has now embarked on a road where we have made exports an integral part of our business. We do not think of sales outside the country as a separate activity. It is now integrated within the mission of each of its businesses."
The Business Units have classified different markets in terms of size, growth opportunities, product segments and target volumes. Therefore, from being present as an exporter in 70 countries, the company today focuses on 15 to 20 key countries, where it will have a significant presence in terms of volumes and market shares. As Dr Sumantran says, "With this integration and focus, we have stepped out in specific areas with specific products. It will be unrealistic for us to be in all places and all product segments. We will choose regions very...
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